 Egypt’s Suez Canal Insurance has increased by 73 MM EGP from 357 MM EGP at the end of March 2015.

Insights MENA

Economic Outlook

Egypt’s Suez Canal Insurance has increased by 73 MM
EGP from 357 MM EGP at the end of March 2015. The
paid compensations have reached 124 MM EGP at the end
of March 2015 compared to 97 MM EGP at the end of
March 2014 with 27.8% growth rate.
 Egypt’s current deficit account reached 9.38 BN USD in
Q1 2015, compared to 543.1 MM USD in Q1 2014. Gulf Arab countries have given to
Egypt an aid of 35 BN USD in the form of oil shipments, cash grants and deposits in
Egypt’s central bank since July 2014.
 The Jordanian government and the Saudi Development Fund signed a funding grant
agreement of 30 MM USD to finance infrastructure project for new industrial cities. The
three industrial cities will be established in the governorates of Tafila, Madaba, Jersah
and Balqa.
 Kuwait’s inflation in the consumer price index (CPI) increased by 3.3% year-on-year
(y/y) in March to 3.4 % y/y in April. On the other hand, Kuwait’s low-cost carrier
Jazeera Airways has begun the bidding process for acquiring a 35% stake in loss-making
state carrier Kuwait Airways.
 Oman’s natural gas production and imports increased by 5.5% to reach 10,216 million
cubic meters (MNCM) in Q1 2015, from 11,750 MNCM for the same period last year,
while non-associated gas showed a growth of 7.6% to 10,216 MNCM, associated gas
production decreased 3.1% to 2,185 MNCM.
 The value of Qatar’s total exports of goods decreased by 36% to reach 25.5 BN in April
2015 compared to the same month in 2014, as the total exports declined by 4.8% monthon-month basis. On the other hand, the imports of goods in April 2015 reached 10.6 BN
QAR with an increase by 19.5% over April 2014, while on a M-o-M the imports
increased by 2.2%. The foreign merchandise trade balance (difference between total
exports and total imports) achieved a surplus of 14.9 BN QAR. However, the trade
balance of goods decreased by 1.5 BN QAR or 9.2% compared to March 2015.
 The Industrial and Commercial Bank of China Ltd. (ICBC) plans to establish its first
branch in the Kingdom in the capital, the Riyadh branch is the fifth branch of China’s
largest commercial bank in the Middle East.
 Dubai is targeting 3,000 megawatts (MW) of solar power by 2030, which is 15% of the
overall energy mix. A 13 MW solar plant has already been commissioned and another
plant of 200 MW capacities is under construction in Seih Al Dahal between Hatta and
Dubai.
 Bahrain will begin cutting subsidies for goods and services to reduce state spending on
its foreign population as low oil prices pressure its budget. Bahraini citizens will receive
cash payments from the state to offset price rises when subsidies are removed.

Political Events

An Egyptian appeals court cancelled a ruling to list the Palestinian
group Hamas as a terrorist organization. On the other hand, the ousted
President Hosni Mubarak will face a second and final retrial over the
killing of protesters during 2011.
 Kuwait has pledged 15 MM USD to the United Nations Relief Works
Agency (UNRWA), to meet the need of the Palestinian refugees fleeing Syria, while the
Kingdom of Saudi Arabia has signed seven agreements worth 111 MM USD.
 Expats who leave Saudi Arabia on re-entry visas and fail to return before their expiry
will be banned from re-entering the Kingdom for 3 years.

Stock Market

 The decline in .TASI
banking sector was led
by Alinma Bank, and
the decline in the
petrochemical sector
was led by SABIC.
 The decline in .ADI
real estate sector was
led by Eshraq and
Aldar, and the decline in the banking sector was led by First Gulf Bank. On
the other hand, the increase in the telecommunication sector was led by
Etisalat.
 .DFMGI investments and financial services sector decline was led by Dubai
investments while the real estate sector decline was led by Arabtec and Emaar.

Companies Transactions

Siemens signs 9 BN USD power deal with Egypt
German industrial company Siemens signed a 9 BN USD
deal with Egypt to supply gas and wind power plants to
boost the North African country’s electricity generation
by 50%. Egypt is passing through worst energy crisis in
decades with power cuts and the rapid grow of demand for electricity in a country of 87
million people. Siemens will add 16.4 gig watts (GW) to Egypt’s national grid.
 Greater Amman Municipality (GAM) signed deal with French Agency for
Development (AFD) to fund rapid bus project.
GAM and AFD signed an agreement to fund Bus Rapid Transit (BRT) project of 152
MM USD. The private sector will be responsible for supplying the busses, IT
management, activation and maintenance. The construction of the project will last for 30
months.
 Shell Oman signed agreement with Sayarti
Shell Oman Marketing Company signed an agreement for distribution of Shell
Lubricants in retails service stations.
 Kidney transplant project deal signed
Qatar Red Crescent (QRC) Hamad Medical Corporation (HMC) have signed an
agreement to pursue joint work on the kidney transplantation project being undertaken
by QRC under the Patient Support Fund. QRC will raise funds to cover surgeries for
kidney and liver transplant patients at HMC, in addition to non-medical costs such as
travel, visa, and accommodation for patients, donors, and caretakers from outside Qatar.
 Emaar Economic City Company signed two agreements on development of hotel
and residential complex
Emaar Economic City (EEC) company signed an agreement with Abdulmohsen bin
Abdulaziz Al-Hokhair Group for operation and maintenance to develop a 4-star hotel in
Al-Bilasan quarter at King Abdullah Economic City with an investment of 100 MM
SAR including the value of the project’s land.

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